HDFC Bank, Indraprastha Gas, Gruh Finance hit record highs in weak market

SJVN, L&T Finance, AIA Engg and Alkem Lab from the BSE500 index hit their respective record highs.

HDFC Bank, Gruh Finance, Indraprastha Gas (IGL), SJVN, L&T Finance Holdings, AIA Engineering and Alkem Laboratories from the BSE500 index have hit their respective all-time highs on the BSE in intra-day trade in an otherwise weak market.

IGL and Gruh Finance were up 3.5% each after hitting record high of Rs 1,071 and Rs 390, respectively, in early morning trade. At 01:46 am; the S&P BSE Sensex was down 0.64% or 180 points at 28,158.

In past one month, the stock price of IGL and Gruh Finance appreciated by 18% each against 3% rise in the benchmark index.

The stock price of IGL has almost doubled in the past year, led by strong performance and multiple re-rating.

“Going forward, we expect margins to remain flat and a volume the compound annual growth rate (CAGR) of around 10%. There may be no sharp uptick in the stock but it will provide steady returns,” said analysts at HDFC Securities, recommending ‘buy’ rating on the stock with target price of Rs 1,200.

“Contrary to the popular belief of a widespread impact, demonetization failed to have any major impact on Gruh Finance's performance. Except for disbursements, which was down 10% year-on-year (YoY) the company had reported strong performance on all counts. Strong margins on back of declining borrowing costs and robust collections on back of intense recover efforts resulted in earnings at Rs 64 crore which were better than our estimates of Rs 57.5 crore,” according to Antique Stock Broking.

Stable margins coupled with strong underwriting will help Gruh Finance deliver Return on Equities (RoEs) in excess of 25% over next three years. Although current price leave little upside to our target price, investors should accumulate this stock on price declines, the brokerage firm said in Q3 results update.

HDFC Bank hit a record high of Rs 1,322, gaining 6% since January 23, post Q3FY17 results. On comparison, the benchmark index up 3.8% during the same period.

The bank had reported another quarter of stellar performance with strong growth in financial and improvement in operations in spite of adverse business conditions due to demonetization.

“Given the bank’s strengthening liability franchise, low exposure to stressed sectors and superior risk management practices, we are of the view that HDFC Bank will continue its streak of consistent performance. We maintain our ‘buy’ rating on stock with potential price of Rs 1,430 per share,” analyst at Choice Equity Broking said in Q3 result analysis.

SJVN was up 2% at Rs 36 after the board of directors of the company approved interim dividend of Rs 2.25 per equity share for the Financial Year 2016-17. The state-owned company reported 23% year on year growth in net profit at Rs 261 crore for the quarter ended December 2016 (Q3FY17).

Alkem Laboratories rallied 7.5% to Rs 2,015 on the BSE in intra-day trade, extending its 3.5% gain in past three trading sessions, after the company reported 25% year on year (YoY) growth in consolidated net profit at Rs 233 crore for the quarter ended December 2016 (Q3FY17).

COMPANY	LATEST	ALL TIME HIGH	PREV HIGH	PREV DATE
AIA ENGG.	1438.00	1454.20	1441.85	14-Feb-17
ALKEM LAB	1985.00	2015.00	1886.05	14-Feb-17
GRUH FINANCE	379.50	390.05	370.00	13-Oct-16
HDFC BANK	1320.00	1321.90	1320.00	06-Feb-17
INDRAPRASTHA GAS	1056.95	1070.95	1062.00	09-Feb-17
L&T FIN.HOLDINGS	109.30	113.50	113.20	14-Feb-17
SJVN	35.00	35.60	35.00	27-Oct-16